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Thanks Ed.
Not sure about Ed, but my belief is they screwed up TO14 by starting the drilling too low down in the column which probably intersected a serious water section. They should've started at the top section from historic production data. I reckon this is why the testing took too long trying to control the water situation!
I reckon they'll start at the top section for TO13 to avoid repeating the water issue from TO14. Which means the testing should be faster, (he says.. lol)
Hi Ed,
There has been some suggestion that Sononagol may have screwed up on TO-14. I'm assuming this theory is referring to the testing process. In your opinion is there anything that could have happened in error that has led to this predicament. From my limited knowledge I would have thought that any mistakes would have been made during the drill rather than testing.
Thanks
Sienna,
There was significant volumes shifted yesterday after the announcement came out, even today volume is still higher than normal so there is stock available or we would be back trading much higher again. Volume could potentially remain high as the test gear is to be at TO-13 next week. Hopefully results will come much quicker from that one than TO-14, even though its got a much longer oil column.
Regards,
Ed.
I'm not sure about the seller SJ but I would bet that Richard Jennings will have a limit price on his buys, likely to be 0.35. This means the MM have to work harder to fill them and the sp wouldn't rise as much as it would with buys going through without a limit order.
There is talk on Telegram of a possible big seller again!!! But i dont get that because surely the recent rns s about placing at 0.5p and 1 director getting involved and a deal with Align/ Jennings at 0.76p i think should deter shareholders from selling. Its all very wierd. Perhaps Ed could shed some light on possible " behind the scenes deals" if he feels comfortable with that?
All true Dan yet the price keeps falling. Partly because so many small cap stocks keep delisting. Punters are fed up with being wiped up. There is no chance of this moving much higher at this time. It is very risky and has disappointing news to say the least. Those who piled in all the way down are losing fortunes. Yes the directors have bought more but that might be desperate. Show me the lows and I will take a punt. I don’t think we are there yet
Morning All,
There is one thing for certain, had this series of events occurred with any other AIM company we would have seen a heavily diluted placing to cover the cost of overruns. I'll ask the detractors on this board again, name me 10 other companies out of the 700 listed that have raised money at a 37% premium in the last 12 months. The name another 5 that have a similar agreement to the PUT. No pressure.
Good post Ed,
Fingers crossed the buys at this level will prove to be excellent value going forward.
We are very very lucky to have financial backers in the company that have such strong belief in the assets.
Hopefully the coming months will be much better for us.
Thanks Nige
Good morning Nige,
Everything that CRCL do in terms of funding seems to be at a premium to the share price, not unexpectedly either given the tiny market cap and significant asset potential here. Cap is circa £7m and both TO-14 and TO-13 are unfinished business at the moment. Sale of the Ni assets covers most of the cap now too. With them debt free they are unencumbered when it comes to acquiring production/reserves too. So a long way to go yet and likely a good reason for that put option at 0.75p and like you say the placing at 0.5p also being at a premium too.
Yeah yesterday was a nice change to Monday's weather, I spend most of it outside, so wasn't around when all the action was happening on CRCL yesterday.
I'd imagine so Nige, TO-13 to get fully tested first then back to test TO-14 again. Be interesting to see what TO-13 does on the flank as company statements are still bullish on the Tobias development.
Regards,
Ed.
Morning Ed,
Stormy weather here on Monday, the news reported it as a mini tornado, let’s hope the sp whips up just as quick lol.
Interesting twist with this Put thingy, I don’t really understand it if I am honest but it has certainly given confidence to investors.
It looks like there is a lot underpinning the sp now, the 0.50 placing and now the Put.
Hopefully over the coming weeks we will turn the corner and the sp can start to climb again?
Thanks Nige
Smkr,
Yeah great to see that Put option in place at 142% premium to the closing price. Shows how keen EXT are to get those 99m shares from Mr Jennings. If completely flies in the face of the gloom and doom mongers we've had on here recently. Obviously the largest shareholder is still very keen on upping their shareholdings at the expense of Mr Jennings after the recent market overreaction. Hopefully we'll get some flow rates from TO-13 in the coming weeks.
Regards,
Ed.
Off he goes again ! 🤣😂, ART123, have a day off pal. You look silly.
I reiterate that the trouble I have with this company all appears to stem from the slow and tedious performance of the operator on the Angola licence, Sonangol.
Obviously, my 2-week timescale to drill a 1000-metre well does not include rig set-up and dismantle times, which should add at the most a week to both ends, giving roughly a 4-week timescale from start to finish. Sonangol have clearly taken twice as long - ie. 2 months - to drill both wells and that is not good enough.
I can come up with numerous working examples of how long it takes to drill an oil (or gas) well and they will all point to roughly the same timescale but to save me the effort 2 suitable examples have appeared in today's RNS's for other companies so I will use them to make my point.
Firstly, Union Jack Oil have recently drilled a well in Oklahoma, USA which spud on 28th March. The pre-drill target timescale was:
Approximate ten-day drilling period to a depth of 5,200 feet - which is about 1,575 metres
Completion time is estimated at approximately a further eight days including perforating and flow-back, if successful.
As announced on 8th April the drill reached 4,600 feet - 1390 metres - after 11 days of drilling.
Secondly, Zephyr Energy are preparing to spud a well in Utah, USA with a planned depth of roughly 10,000 feet - 3000 metres - with a planned drill time of 30 days.
I could come up with numerous other examples. It does not take 2 months to drill a well to 1000 metres. Progress has been pathetic at best, made even worse by the fact that after all this time they cannot even get the bloody well to flow oil. Sonangol are total time-wasters.
Yeah it’s a put option. usually associated with being short I suppose in its true form .. so he can sell high, and if he fancies, can take them back cheaper I guess. If he fancies buying that is.
I think we now know the “something is going on” I mentioned last week lol.
RJ has the Option to sell - not EXT the Option to buy.
"And they have replaced it with an equally silly and unrealistic Put Option"
Please explain why you think this is unrealistic - its quite simple, Extraction have the option Aligns' stock for 0.75., at any time. What's unrealistic?
It does appear silly at first glance but perhaps there are charges and restrictions not discussed in the RNS?
If not, is it just plain bullishness which also prevents Jennings from selling at these levels and knocking the price?
What other reason is there?
(Maybe we should all try and get similar terms from Ext - lol.)
Yeah, I sprout nonsense. I see that the share price was up 13.5% when the first Call Option was announced back in February but it was straight back down within a day or two though. The market saw through that con all right. Now, today they have cancelled that first Call Option so there was nothing going on with it. And they have replaced it with an equally silly and unrealistic Put Option.
"And a 1000 metre drill should be done in about 2 weeks as well"
This sums up just how much nonsense you spout.
Apologies if I am coming over as a bit hard on this outfit. I have just seen and heard quite enough nonsense over the last 6 or 7 months and it just isn't getting any better.
I am not out of pocket here. In fact, I had never even heard of the company before the announcement of the start of operations in Angola at the beginning of September last year. My research has told me that they used to be Regency Mines, but I had never had any of their shares either. Anyway, I thought it looked a good prospect and soon had a load at an average of 0.305p. I then traded them at various times over the next few months and bought some more at about 0.9p but did offload the rest when the unsuccessful flow test results were first announced but ended up in profit overall.
What has annoyed me is that it took Sonangol 2 months to drill the first well, which only went to 958 metres. You cannot take that long to drill a well to less than 1000 metres. Then they took another 2 months to drill TO-14 and that only went to a depth of 781 metres.
Then, on 28th December, they started testing TO-14, only 6 weeks later to announce that because of adverse weather and equipment shortages they still had not started the flow test. Then another 2 months later, we get told that TO-14 hasn't flowed any oil. It doesn't take 2 months to flow test an oil drill. It is something that can be done in a couple of weeks. And a 1000 metre drill should be done in about 2 weeks as well.
I suppose that my concern here is with the operator, Sonangol, rather than with Corcel but in such a situation, where admittedly it is out of Corcel's hands, there is little to do but state my concern on the Corcel board here.
Apologies - but what a fiasco this has turned into. Is there any way back? We shall see. I shall certainly buy back in if they get the oil to flow but I am not going to be conned back in with dodgy 'premium-priced' placings or unrealistic Call or Put Options.
ATB
It is, but the sp was .80 when the initial option was together. We can't expect Extraction to purchase 0.35 shares at 1.2. How many other AIM company has done this? I'm guessing none.
Edit. Yes it is a discount to the 1.2p, but relative to the current share price it is a higher uplift I think.
No, but they had the choice with the Call. Now the holder has the choice with the Put.
Assuming the management has integrity then it looks bullish to me.
Thanks. Is it not a discount to what they were prepared to pay before though?